Adidas AG, the world’s second- largest sporting-goods maker, rose in Frankfurt trading after the company said profit and sales will rise on higher revenue in China and other emerging markets.
Earnings per share will increase 10 percent to 15 percent this year after more than doubling in 2010, Herzogenaurach, Germany-based Adidas said in a statement today. Revenue will increase at a “mid to high single-digit” percentage pace from last year’s record 12 billion euros ($16.5 billion).
Adidas has identified China along with Russia and North America as “growth markets,” where it plans to generate about half of its forecast 50 percent sales increase by 2015. Fourth- quarter revenue gained 19 percent to 2.93 billion euros as sales in China rose 25 percent and European emerging-market revenue advanced 34 percent.
The shares rose as much as 2.6 percent, and traded at 47.02 euros, up 1.1 percent, at 9:32 a.m. local time in Frankfurt, leading gains on Germany’s benchmark DAX index. The company proposed a dividend of 80 cents a share for the year, up from the prior year’s 35 cents.
“Usually Adidas’s guidance is rather cautious at the beginning of the year,” Christoph Schlienkamp, an analyst at Bankhaus Lampe in Dusseldorf, said by phone. “We may see an increased forecast later in 2011.” Schlienkamp has a “buy” rating on the stock. Net income for the quarter declined to 7 million euros, or 3 cents a share, from 19 million euros, or 9 cents, a year earlier as marketing expenses rose.
Adidas didn’t quantify the increase in marketing costs, which included an advertising campaign at the start of the NBA basketball season in the U.S.